The Expert Group for Aid Studies (EBA) has commissioned a new in‑depth analysis showing that Sweden is at a critical juncture where climate‑related development finance and export finance must work more closely together. The report, the first of its kind, examines how Swedish public finance institutions – Sida, Swedfund, the Swedish Export Credit Agency (EKN), the Swedish Export Credit Corporation (SEK), and Business Sweden – can increase climate impact through deeper collaboration.
The report identifies substantial untapped potential for synergies, but also significant structural obstacles, including fragmented mandates and a lack of shared financing instruments. Combining the willingness of development actors to take on riskier projects in developing countries with the ability of export financing to mobilise large amounts of capital would enable more climate projects to be realised, particularly in countries where the need is greatest. The authors emphasises that Swedish initiatives must continue to be based on the climate plans of recipient countries, to ensure that aid is not guided by Swedish export interests.
At the same time, there is a need for clearer and more uniform methods of measuring and reporting climate financing. Currently, different methods are used by various actors, making it difficult to obtain an overall picture. The report highlights more common working methods and open data as key to strengthening transparency. The report also emphasises that international cooperation, for instance via the EU’s Global Gateway initiative, could enable Sweden to achieve a greater impact.